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Payment cards

Payment cards are plastic cards used to make payments without cash. They have become the most popular means to pay for goods and services purchased from participating suppliers in Italy and abroad, as well as to make payments via Internet or even by telephone. They can also be used to withdraw cash from ATMs in Italy and abroad by keying in a secret code (PIN). If a card is lost or stolen it can be blocked by telephoning a dedicated toll-free number.

It is important to block a lost or stolen payment card immediately.

Payment cards are divided into credit cards, debit cards and prepaid cards.

To obtain a credit card the holder signs a contract with a bank or card issuer, which then sends periodically (usually every month) a list (statement) of the purchases made. The card-holder pays the bank or issuer the whole amount in a lump sum the following month, without interest, usually by direct debit from a bank account. The contract may allow for repayments to be made in instalments, in which case interest is added at an agreed fixed rate. To pay with a credit card the holder signs a receipt, using the same signature as appears on the back of the card. Credit cards are issued after the bank or issuer has checked the holder’s credit, in other words his or her ability to repay the sums that will be lent, even for a very short period of time.

Debit cards are generally issued by a bank either automatically or on request to customers holding an account with them. Debit cards can be used for a variety of operations at ATMs (for example, checking the balance of an account, topping up a mobile telephone, and so on). Payments and withdrawals are debited to the holder’s account almost in real time. This means that the value of the purchase or the amount of the withdrawal must be available in the holder’s account when the debit card is used.

Prepaid cards are loaded with a sum of money that the holder of the card has paid in advance to the issuer, without any credit check or bank account requirements. The amount on the card can be spent at the issuer (purchasing cards) who supplies goods or services (for instance to pay motorway tolls or telephone services) or at a number of suppliers (top-up or electron cards).

Choosing one type of card rather than another will depend on a variety of considerations, such as how widely it is accepted by suppliers of goods and services, the charges for use, whether repayment in instalments is needed, and the level of the card’s security according to its use (directly at suppliers or on the Internet).